MR LIM Boon Heng has defended the need for Community Development Councils (CDCs) to have flexibility in rewarding staff, pointing out that is how companies around the world operate.

'The fixed monthly pay is kept down and the bonuses vary according to performance,' said the Minister in the Prime Minister's Office on Monday after the launch of NTUC FairPrice's new 24-hour hypermarket in Jurong.

'This helps to motivate people to perform, because if a person does badly, he will not get the same high bonus. So this ensures that the reward system is fair and responsive to the needs of the organisation.'

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